Financial services group 27four announced today, October 30, the launch of South Africa’s first benchmarking framework designed to measure diversity, equity, and inclusion (DEI) in the asset management sector. This framework was unveiled during a media event at the JSE in Johannesburg.
“The 27four DEI Index framework offers a comprehensive approach to measuring DEI in South Africa’s asset management industry. It assesses asset managers across five key dimensions – ownership, representation, equity, impact, and governance – with the aim of driving transformation,” said 27four CEO Fatima Vawda.
Vawda elaborated that this publication represents an evolution from their earlier initiative, which began in 2009 as the BEE.conomics Annual Transformation in South African Asset Management Survey.
“Since its inception, the BEE.conomics survey has served as an important instrument in raising awareness of the participation and representation of black people and women in asset management in South Africa. It has also become a reliable source of data for measuring the state of transformation in the sector and identifying trends shaping the future of the industry,” Vawda said.
In developing this framework, 27four collected data from 93 asset managers overseeing R8.42 trillion in assets. The report, available for free download, reveals key insights into industry trends, best practices, and progress toward greater inclusivity and representation.
“Research has consistently shown that investment teams with balanced diversity deliver superior returns. Teams composed of individuals from different backgrounds exhibit 'cognitive diversity,' where the combination of their varied experiences, beliefs, and perspectives leads to faster and more effective problem-solving,” she said.
“This report not only reflects the current state of the industry but also serves as a roadmap for the future, outlining the steps needed to drive social progress, enhance financial outcomes, and foster innovation,” Vawda stated.
Key findings include:
The top five asset managers oversee about 65% of the total market AUM, while the top 10 manage around 81%, and the top 20 account for 92%.
The AUM distribution shows 60.5% invested locally and 39.5% offshore, reflecting a balanced approach aligned with South Africa’s exchange control restrictions.
Public markets make up 90% of the total AUM, with private markets at 4% and 6% classified as “other.”
Top DEI performers by AUM categories include Old Mutual Investment Group (over R100bn AUM), Terebinth Capital (R30bn–R100bn AUM), Perpetua Investment Managers (R10bn–R30bn AUM), and Secha Capital (less than R10bn AUM).
DEI scores vary significantly across firms, with a mean score of 45% ranging from 15% to 78%, reflecting disparities in DEI performance.
“Our research has found that the industry has made progress in black ownership, with 74% of firms having over 51% black ownership. This indicates meaningful strides toward economic transformation. However, only 18% of firms have over 51% women ownership, revealing a substantial gender gap that reflects ongoing challenges in achieving gender equity in ownership,” Vawda noted.
While black individuals hold significant positions in senior leadership (66% of CEOs and 63% of chairpersons are black), women remain underrepresented, with only 18% of CEOs and 16% of CIOs being women. Women are more commonly found in entry-level roles, such as analysts, but face barriers to advancement into senior decision-making positions like portfolio managers, where 76% of firms report less than 30% women representation.
Vawda highlighted encouraging trends in pay parity, with 94% of firms reporting gender pay equality, which is favorable compared to global standards. However, disparities in promotions and retention persist. While 97% of firms promoted black employees at rates comparable to white employees, only 87% did so for women compared to men.
Retention rates also present challenges, with 13% of firms reporting differences for black employees and 15% for women. Recruitment data indicates that while 94% of firms hire black individuals at rates comparable to other racial groups, only 84% do the same for women, underscoring the need for stronger strategies to enhance gender diversity.
“Asset managers were also evaluated against best practices in caregiving, non-discrimination, the prohibition of sexual harassment, equal opportunity, career advancement, and preferential procurement. Unfortunately, not all managers have such policies in place. Only 37% of participants have policies for preferential procurement, 35% for equal opportunity, 42% address discrimination and harassment, and 37% provide policies for care leave,” Vawda said.
“The absence of DEI policies across much of the industry reflects a considerable gap in its efforts to promote genuinely inclusive and equitable workplaces. Among the managers who submitted their policies, enforcement and comprehensiveness vary, but the overall trajectory reflects a positive trend towards improved governance and policy development,” she said.
While challenges remain in DEI governance and workforce representation—particularly for women and black professionals in senior roles—Vawda sees clear progress and a growing commitment to change. The positive trajectory of DEI practices is encouraging, and with sustained effort, the sector can realize its full potential as a truly inclusive space for all.
The 27four DEI Index provides companies with a clear tool to evaluate, benchmark, and strengthen their DEI practices, ensuring long-term, positive impacts on both employees and the economy. “We believe better businesses build a better country. Ultimately, it’s all about the people we serve,” she said.
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